Morgan Stanley Real Estate announced today that it has completed the previously announced acquisition of CNL Hotels & Resorts, Inc. (CHR) for $6.6 billion. Immediately prior to and in connection with the acquisition, Ashford Hospitality Trust (NYSE:AHT) acquired 51 of CHR’s full and select service hotels totaling 15,105 rooms for $2.4 billion and Morgan Stanley Real Estate acquired CHR’s eight luxury resort properties in Arizona, California, Florida and Hawaii totaling 5,506 rooms.
The stockholders of CHR are entitled to receive $20.50 in cash, without interest and less any applicable withholding for each share of common stock of CHR that they own.
Commenting on the transaction, Michael Franco, Managing Director, Morgan Stanley Real Estate, said, “The acquisition of CHR’s top-quality resort properties allows us to take advantage of positive fundamentals in the U.S. hotel sector, which is driven by continued strong corporate group travel and leisure travelers looking for a luxury hotel experience. We look forward to fully realizing the potential of each property.”
Morgan Stanley Real Estate’s luxury portfolio will include JW Marriott Desert Ridge Resort & Spa in Phoenix; Claremont Resort & Spa in Berkeley, California; Ritz-Carlton Orlando Grande Lakes and JW Marriott Orlando, Grande Lakes, both in Orlando, Florida, as well as three hotels in Hilton’s Waldorf=Astoria Collection: Arizona Biltmore Resort & Spa in Phoenix, La Quinta Resort & Club in Palm Springs, California, and Grand Wailea Resort Hotel & Spa in Maui, Hawaii.
Morgan Stanley advised Morgan Stanley Real Estate and Goodwin Procter LLP provided legal counsel. Morgan Stanley Real Estate will partner with Boston, MA based Pyramid Advisors LLC, a full-service hotel company, to own and asset manage the portfolio.
Morgan Stanley Real Estate is comprised of three major global businesses: Investing, Banking and Lending. Since 1991, Morgan Stanley has acquired $113.5 billion of real estate assets worldwide and currently manages $72.8 billion in real estate assets on behalf of its clients. In addition, Morgan Stanley Real Estate provides a complete range of market-leading investment banking services to its clients, including advice on strategy, mergers, acquisitions and restructurings, as well as underwriting public and private debt and equity financings. Morgan Stanley is also a global leader in real estate lending offering approximately $156.0 billion of CMBS through the capital markets since 1997, including $35.5 billion in 2006. For more information about Morgan Stanley Real Estate, go to www.morganstanley.com/realestate.
Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, investment management, wealth management and credit services. The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 600 offices in 31 countries. For further information about Morgan Stanley, please visit www.morganstanley.com.
